Chapter 10 Flashcards
A mutual understanding or meeting of the minds between two or more individuals regarding the terms of a contract
Agreement
A promise or commitment to perform or refrain from performing some specified act in the future
Offer
A statement of future intent does not qualify as this
An offer
Advertisements, catalogues, price lists, and circular letters are treated as what?
Invitations to negotiate
Agreements to agree to the material terms of a contract at some future date were historically not considered to be binding contracts, but now may be
Enforceable Agreements
Increasingly, the courts are holding that a preliminary agreement constitutes a binding contract if the parties have
Agree on all essential terms and no disputed issues remain to be resolved
A preliminary agreement is only binding in the sense that the parties have committed themselves to do what?
Negotiate the undecided terms in good faith in an effort to reach a final agreement
The withdrawal of a contract offer by the offeror. Unless an offer is irrevocable, it can be revoked at any time prior to acceptance without liability
Revocation
An offeree’s response to an offer in which the offeree rejects the original offer and at the same time makes a new offer
Counteroffer
A common law rule that requires that the terms of the offeree’s acceptance adhere exactly to the terms of the offeror’s offer for a valid contract to be formed
Mirror Image Rule
A contract under which the offeror cannot revoke the offer for a stipulated time period
Option Contract
The act of voluntarily agreeing through words or conduct to the terms of an offer, thereby creating a contract
Acceptance
A common law rule that acceptance takes effect, and thus completes formation of the contract, at the time the offeree sends or delivers the acceptance via the communication made expressly or impliedly by the offeror
Mailbox Rule
